posted
just a question, but i went to yahoo's tech. analysis and RSI on a particular stock says its overbought, but according to barcharts, it says to buy. What would y'all recommend? Go by the tech. analysis or go with the barchart "opinion"
-------------------- "I sell ice in the winter, i sell fire in hell, I AM A HUSTLA, BABY, i sell water to a well!"
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posted
If it is over 70 to 75 RSI sell it.. it is overbought or at the very least put a tight stop/loss to protect any profits you have and/or limit your losses in case of a trend reversal... I also recommend you learn Candlestick charting... below is a book i highly recommend... as for a little lesson on RSI i included a post i did awhile back below...
Sorry Risky.. i would of answered your question 2 days ago but i had problems signing into the bulletin board.. but it seems to be working now.. anyways RSI stands for Relative Strength Index and it gives you a indication if a stock has been overbought or oversold... if it's either or then it will most likely become a "correction" .. if overbought it will go down in price because its overpriced in traders minds so they will take a profit and sell..so the RSI will begin a downtrend.. if its oversold then the price has gone too low and it could be a bargain .. therefore traders will start buying and the RSI will begin a uptrend.. so the way to use it to analyze stocks is if the RSI hits 75 or above then its overbought and you should take partial or all profits because it will correct itself very soon if not later and begin a downtrend in price... if the RSI goes down to 25 and below.. look for it to hook up into a uptrend and buy it at a bargain.. when its between 25 and 75 look for uptrends to make a entry into the stock or downtrends to exit and enter it later when it recovers.. Anyways i hope this answers your question.. let me know if you understood... in your chart options select RSI as one of your Indicators.. I also use the OBV (on Balance Volume) which "indicates" if money is flowing in or out of a stock.. same concept though .. uptrend means price will go up because money is flowing into the stock and downtrend means price will go down because money is flowing out of the stock.. try to use the RSI and OBV when the price isnt moving but the RSI/OBV is... in that case they are giving you a early signal which way prices might or most likely move...
-------------------- Let the world change you... And you can change the world.
posted
When looking at a stock then do you use the rsi and obv on 1 and 2 days or on like a month? I see 2 different results when i look between day and month on a stock Why is that?
-------------------- Organizations are perfectly dezined to get the results that they get.
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posted
I find RSI boring, I like using a PPO over ADX model.
for simplistic overbought I use CCI it measures nothing else and times it before RSI.
Macd I find shows diversions well. Candlesticks are fairly obvious if your buying whit is good shorting dark or red is good. anything inbetween its better to be in cash.
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quote:Originally posted by keithsan: I find RSI boring, I like using a PPO over ADX model.
for simplistic overbought I use CCI it measures nothing else and times it before RSI.
Macd I find shows diversions well. Candlesticks are fairly obvious if your buying whit is good shorting dark or red is good. anything inbetween its better to be in cash.
RSI isnt boring.. it has gotten me out of many of positions that i probably otherwise wouldnt have gotten out of.. besides who says Indicators/Oscillators have to be fun with fireworks and naked girls lol ... RSI and OBV are pretty straight forward.. right to the point... as for MACD it is a very lagging indicator/oscillator.. it's only good up to a point.. as for Candlesticks Keith.. it sounds like you really never read up on it.. because it's much more then it being black or white candles which indicate if a stock is up or down for the day... there are candlestick Patterns that indicate Trend Reversals (much like we look for regular patterns like double bottom, double tops, head and shoulders, cup and handle etc.).. a couple of easy ones are The Hammer and The Hanging Man.. but anyways Keith if you dont know anything about candles other then price is up or down for the day.. pick up a book sometime and read it through.. might change your mind..anyways what indicators you use is a matter of preference .. they all have good and bad points... i just like RSI/OBV because its simplistic and straight to the point...
-------------------- Let the world change you... And you can change the world.
Google is different.. that is just a stock people are being idiots with.. eventually someday it will "correct" itself and go down to a normal level in price... but no matter what indicator/oscillator we use whether RSI or CCI or OBV etc.. you and me and everyone else knows that stock is overbought and someday the MM's will short that stock and it will plummet.. the average investor won't understand what happened because they are in it for the long term not the short term and they think the stock will just keep going up and up forever.. hell the average investor doesn't know what a MM is lol ....
-------------------- Let the world change you... And you can change the world.
again, i wanna say thanks for the replies. I have another question... if a stock closed at a higher price then the open, but the last few transactions were sells, does that indicate a LOWER gap for the next day?
-------------------- "I sell ice in the winter, i sell fire in hell, I AM A HUSTLA, BABY, i sell water to a well!"
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posted
The macd is a lagging indicator thats why it has the histogram running right trough the middle of it... the histogram turns it into a future indicator...
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again, i wanna say thanks for the replies. I have another question... if a stock closed at a higher price then the open, but the last few transactions were sells, does that indicate a LOWER gap for the next day?
I tend to look at after market hours prices to determine if it will gap up or down.. you can say that is a indicator in itself..
-------------------- Let the world change you... And you can change the world.
quote:Originally posted by blueranger: The macd is a lagging indicator thats why it has the histogram running right trough the middle of it... the histogram turns it into a future indicator...
Well if you meant that MACD-H then yes that is much better then the traditional MACD.. still a lagger but can be used somewhat as a future indicator...
-------------------- Let the world change you... And you can change the world.
posted
I am swing trading the efa please take a look at it and give me some advise. i use the macd-h and the rsi...
I am looking for the right time to hop out and hop in...its my retirement and I have 100s of shares and I am just looking to hop out at the top and in at the bottom...once or twice a month.
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posted
I hope i read you right and you said you have stock EFA.. that stock is pretty high in price.. didnt think anyone on this board traded in stocks that high in price.. right now its trading below it's Moving Averages and it has a resistance of $158 .. it's RSI is in neutral territory so still in safe area... it's candle appears to be a Bearish Harami with indecision being what it looks like.. but would have to wait till monday to confirm its trend reversal pattern.. so in my opinion it most likely will go down on monday though that is never 100%... but if it breaks its resistance (158) and moving averages look to sell at around 162 unless it breaks that.. my best advice is to just put a trailing stop/loss and let that make your decision.. you can always buy it back if you want to reenter the stock...
-------------------- Let the world change you... And you can change the world.
posted
this is my retirement, and i noticed the candles stick pattern
but over its history its macd turns at -1 and in the last 3 years it turned at -1 3 times and it has only went to -2 once in the last few years.. also the rsi always moves up when it hits 30... so these things are saying its going up..
the candle stick says down.. but wants confirmation on monday..
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posted
yeah RSI always tend to bounce off in the 25 to 30 area for most stocks.. it is your call.. but I would just put a stop/loss whether a regular manual one everyday or a trailing one...
-------------------- Let the world change you... And you can change the world.
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